Money managers under the microscope
A mixed picture
Results from fund firms GAM and Jupiter this morning provide some interesting insights into the different drivers of the hedge fund industry.
GAM, which saw profits tumble last year as clients pulled out of its hedge funds, recorded net inflows into these portfolios for the first time in two years, showing that, despite market volatility and investor caution, there is money out there looking for a home and that a firm can still reverse its fortunes in this climate.
Jupiter, on the other hand, saw net inflows across its mutual funds but suffered a net 36 mln stg outflow in the first half from its hedge funds, showing that some funds are still losing hedge fund assets despite overall industry inflows.
There are plenty of drivers of flows in the industry at present – money has been coming in slowly, but generally to the bigger, better-performing firms, helped by the industry’s increasingly institutional client base. Meanwhile, Ucits funds provide a potential boost to the industry, but are they simply cannibalising offshore hedge funds’ assets?
Jupiter CEO Edward Bonham Carter said this morning that the firm’s absolute return business had grown to three times the size of the hedge funds unit. “Effectively our hedge funds business has moved onshore and this is where we see the future of our hedge fund strategies.”